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Sempra Energy (SRE) Q4 Earnings Beat, Revenues Rise Y/Y
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Sempra Energy’s (SRE - Free Report) fourth-quarter 2021 adjusted earnings per share (EPS) came in at $2.16. The reported earnings beat the Zacks Consensus Estimate of $2.02 by 6.9%. However, the bottom line declined 5.3% from $2.28 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.90 per share compared with $1.43 in the fourth quarter of 2020. This year-over-year upside was driven by a solid top line.
The company reported adjusted EPS of $8.43 for full-year 2021, which increased 5.4% from $8.00 reported in 2020. Full-year earnings surpassed the Zacks Consensus Estimate of $8.29 per share by 1.7%.
Total Revenues
In the quarter under review, total revenues of $3,844 million increased 21.2% year over year on higher contributions from both the Natural Gas business (up 20%) and Energy-related businesses (up solid 100.6%). Moreover, the top line exceeded the consensus mark of $3,244.1 million by 18.5%.
In 2021, SRE generated revenues worth $12.86 billion, up 13.1% from the year-ago figure of $11.37 billion, which beat the Zacks Consensus Estimate of $12.26 billion by 4.9%.
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $216 million compared with the year-ago quarter’s $191 million.
Southern California Gas Company (SoCalGas): The segment’s earnings came in at $198 million in the fourth quarter of 2021 compared with $79 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $137 million in the reported quarter compared with $121 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $263 million compared with $71 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division increased to $210 million from the year-ago quarter’s loss of $48 million.
Financial Update
As of Dec 31, 2021, Sempra Energy’s cash and cash equivalents totaled $559 million compared with $960 million as of Dec 31, 2020.
Long-term debt and finance leases amounted to $21,068 million as of Dec 31, 2021 compared with $21,781 million at the 2020 end.
Cash flow from operating activities was $3,842 million at the end of 2021, up from $2,591 million at the end of 2020.
In 2021, the company’s capital expenditures, investments and acquisitions were $5,648 million compared with $5,328 million in 2020.
2022 Guidance
Sempra Energy reaffirmed its adjusted EPS guidance for 2022. The company still expects to generate earnings in the range of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.43 per share, more than the midpoint of the company’s guided range.
The company also initiated its 2023 EPS guidance. SRE expects to generate earnings in the range of $8.60-$9.20 per share in 2023.
CenterPoint Energy, Inc. (CNP - Free Report) reported fourth-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 31 cents by 13.9%. The bottom line also improved 24.1% from the year-ago quarter’s figure.
The Zacks Consensus Estimate for CenterPoint Energy’s 2022 earnings is pegged at $1.41 per share, which implies a year-over-year decline of 14%. CNP boasts a long-term earnings growth rate of 4.7%.
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2021 operating EPS of $1.05, which surpassed the Zacks Consensus Estimate of 94 cents by 11.7%. The bottom line also increased 1.9% from the year-ago quarter’s $1.03 per share.
The Zacks Consensus Estimate for DTE Energy’s 2022 earnings is pegged at $5.94 per share, which implies a year-over-year slip of 0.8%. DTE boasts a long-term earnings growth rate of 6%.
Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported fourth-quarter 2021 adjusted operating earnings of 69 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 1.5%. The bottom line also improved 6.2% on a year-over-year basis.
The Zacks Consensus Estimate for PSEG’s 2022 earnings is pegged at $3.65 per share, which implies year-over-year growth of 6.4%. PEG boasts a long-term earnings growth rate of 3.6%.
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Sempra Energy (SRE) Q4 Earnings Beat, Revenues Rise Y/Y
Sempra Energy’s (SRE - Free Report) fourth-quarter 2021 adjusted earnings per share (EPS) came in at $2.16. The reported earnings beat the Zacks Consensus Estimate of $2.02 by 6.9%. However, the bottom line declined 5.3% from $2.28 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.90 per share compared with $1.43 in the fourth quarter of 2020. This year-over-year upside was driven by a solid top line.
The company reported adjusted EPS of $8.43 for full-year 2021, which increased 5.4% from $8.00 reported in 2020. Full-year earnings surpassed the Zacks Consensus Estimate of $8.29 per share by 1.7%.
Total Revenues
In the quarter under review, total revenues of $3,844 million increased 21.2% year over year on higher contributions from both the Natural Gas business (up 20%) and Energy-related businesses (up solid 100.6%). Moreover, the top line exceeded the consensus mark of $3,244.1 million by 18.5%.
In 2021, SRE generated revenues worth $12.86 billion, up 13.1% from the year-ago figure of $11.37 billion, which beat the Zacks Consensus Estimate of $12.26 billion by 4.9%.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $216 million compared with the year-ago quarter’s $191 million.
Southern California Gas Company (SoCalGas): The segment’s earnings came in at $198 million in the fourth quarter of 2021 compared with $79 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $137 million in the reported quarter compared with $121 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $263 million compared with $71 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division increased to $210 million from the year-ago quarter’s loss of $48 million.
Financial Update
As of Dec 31, 2021, Sempra Energy’s cash and cash equivalents totaled $559 million compared with $960 million as of Dec 31, 2020.
Long-term debt and finance leases amounted to $21,068 million as of Dec 31, 2021 compared with $21,781 million at the 2020 end.
Cash flow from operating activities was $3,842 million at the end of 2021, up from $2,591 million at the end of 2020.
In 2021, the company’s capital expenditures, investments and acquisitions were $5,648 million compared with $5,328 million in 2020.
2022 Guidance
Sempra Energy reaffirmed its adjusted EPS guidance for 2022. The company still expects to generate earnings in the range of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.43 per share, more than the midpoint of the company’s guided range.
The company also initiated its 2023 EPS guidance. SRE expects to generate earnings in the range of $8.60-$9.20 per share in 2023.
Zacks Rank
Sempra Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Utility Releases
CenterPoint Energy, Inc. (CNP - Free Report) reported fourth-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 31 cents by 13.9%. The bottom line also improved 24.1% from the year-ago quarter’s figure.
The Zacks Consensus Estimate for CenterPoint Energy’s 2022 earnings is pegged at $1.41 per share, which implies a year-over-year decline of 14%. CNP boasts a long-term earnings growth rate of 4.7%.
DTE Energy Company (DTE - Free Report) reported fourth-quarter 2021 operating EPS of $1.05, which surpassed the Zacks Consensus Estimate of 94 cents by 11.7%. The bottom line also increased 1.9% from the year-ago quarter’s $1.03 per share.
The Zacks Consensus Estimate for DTE Energy’s 2022 earnings is pegged at $5.94 per share, which implies a year-over-year slip of 0.8%. DTE boasts a long-term earnings growth rate of 6%.
Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported fourth-quarter 2021 adjusted operating earnings of 69 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 1.5%. The bottom line also improved 6.2% on a year-over-year basis.
The Zacks Consensus Estimate for PSEG’s 2022 earnings is pegged at $3.65 per share, which implies year-over-year growth of 6.4%. PEG boasts a long-term earnings growth rate of 3.6%.